AAMB-1 Experience

seddik.karami · #1 (**permalink**) 05-26-2009, 06:45 AM

I' looking to purchase AAMB-1 Expert advisor and would like to share results with some experienced expert advisor users.

This expert advisor realizes 40% since the begining of the year and the author is publishing a live and demo statement on its web site http:://www.my-forex-ea.com. Both statements are in line with my personal test.

It faced a draw down of 20% two month ago but has recover since.

It's a commercial advisor and i'd like to know what precaution must be taken before buying an EA ?

myanyx · #2 (**permalink**) 05-26-2009, 08:34 AM

It's martingale, will blow your account someday

seddik.karami · #3 (**permalink**) 05-26-2009, 02:19 PM

Why is it a martingale ?

seddik.karami · #4 (**permalink**) 05-26-2009, 02:27 PM

What do you call a martingale ?

Arctic4x · #5 (**permalink**) 05-26-2009, 04:18 PM

Hi

I don't know anything about that EA (or any EA...) but you can read about Martingale here:
http://en.wikipedia.org/wiki/Martingale_(betting_system)

And if you do a search here on this forum you will see some people use it for MM in trading.
In my opinion it is best to stay away from it..

Arctic4x

seddik.karami · #6 (**permalink**) 05-26-2009, 05:40 PM

It's a fact that AAMB-1 is increasing the position regularly but is it really a problem? I think it mainly depends on the wining/loosing trade ratio.

Even if a strategy is not classified as a "martingale", it may enter conditions where many consecutive trades are loosing one and the account is blown!

So how can we evaluate if the trade success ratio is reasonable enough ?

seddik.karami · #7 (**permalink**) 05-26-2009, 06:00 PM

I see. Do you compare this ea to gambling and martingale because it increases its position?

I'm not sure this is a real problem if the winning ratio is reasonable. Any strategy may enter a drawdown that may blow the account.

The question is to evaluate the winning ratio stability in the future compare to what has been observed in the past by the author. By the way, I'm not sure how to verify these backtests and demo statements.

david.petard · #8 (**permalink**) 05-29-2009, 05:41 AM

Dear Seddik,

I'm using this expert advisor from 4 month now and my results are really in line with the expectation and the results published on the author web site.

It has faced drawdown around 20% last month but has recover since. The biggest difficulty is to let it run and not modify its trading in these conditions.

I won 40% during this period and therefore Profit compared to the drawdown is around 2 during these 4 months.

seddik.karami · #9 (**permalink**) 06-01-2009, 06:14 AM

It is performing really well this two last week (800 pips) !

david.petard · #10 (**permalink**) 06-11-2009, 05:33 PM

Year to day performance is now above 50%.